The pair has had some decent swings in price action in the last two months. However, they seem largely contained between the lower threshold of 1.3450 and now the ceiling at 1.3600. The latter in particular looks to be a strong resistance point as it held back all of the daily advances in March. That represents a key technical hurdle for buyers now, in chasing any upside momentum.
But as the pair backs away from the key level, price action is slowly lurking towards the confluence of its key daily moving averages next. The junction of the 100 (red line) and 200-day (blue line) moving averages is at 1.3495-00 currently. And that will be a key downside region to watch in identifying the pair's bias this week.
Break below that and sellers will have reason to try and test the downside floor near 1.3450 again. Keep above and buyers will stay poised in gearing up for another attempt at the 1.3600 mark.
While the US jobs report is the main focus for broader markets, keep in mind that we will also get the Canadian jobs report on Friday at the same time as well. That could see diverging fortunes between the dollar and loonie towards the end of the week. And if we are anywhere near the key technical thresholds above, traders might have reason to act on that to chase a break.
